A Virgin spokesperson says no payments to an anti- Brexit campaign were made but that Branson made it clear he supported remain during the referendum.
Photograph: Alex Wong/Getty Images

Alan Milburn, the former Labour health minister and government social mobility tsar, is at the helm of a new group funded in part by Sir Richard Branson to fight Britain’s exit from the European Union.

The aim is to bring together disparate pro-European groups behind an explicit campaign to reverse the referendum decision to leave, probably only after the government has revealed the content of its exit terms and the UK economy has reacted.

The main pro-European organisation at present, Open Britain, is not explicitly dedicated to remaining in the EU, but instead wants to secure the softest Brexit possible for business, including maximum involvement in the single market.

It is instead setting tests by which Brexit can be examined, and highlighting the risks of leaving the single market for a range of industries.

The Milburn-led group is also separate from Blair’s organisation designed to revive the political centre ground to combat those who think populism is a solution to globalisation.

Freuds, a leading public relations agency that was founded by Matthew Freud, a close friend of Blair and David Cameron, is understood to have been commissioned to manage the strategy and marketing of the new pro-EU campaign.

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An email published by the Independent says Branson has offered office space and cash to help the organisation launch. The new organisation is in part bringing together existing pressure groups both regional or based by sector, as well as other more long standing groups such as the European Movement.

One source said there is now agreement to press ahead, but there have been a lot of technical discussions about funding and the legal structure. One initial source of funding – in the region of £300,000 – has come from Clive Cowdery, the millionaire insurance broker and philanthropist.

The Milburn email says: “We have been beavering away over the last few months to get a Europe campaign up and running. I’m pleased to say that substantial progress has been made.

“I have met the Freuds team several times and we are making good progress. I have been in discussions with an excellent potential CEO to lead the campaign.

“Virgin … are keen to help ... Since we last spoke [they] have offered a further £25k, plus bigger office space, help with legal advice and a possible secondment.

“I have held discussions with Stronger In, Chuka Umunna, a new organisation called Common Ground, Bob Geldof and a number of senior politicians across the party spectrum.”

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There is a rivalry of sorts between the Milburn-led organisation and Blair’s allies, with some claiming Blair must be kept away from any anti-Brexit organisation, and others challenging whether Milburn’s own long-standing private sector involvement after he left government puts him in a substantially stronger position with the key swing groups opposed to the EU.

A Virgin spokesperson said: “Since the EU referendum, Virgin has not made any payments to any Brexit campaign or organisation.

“It is well known that Richard supported the remain campaign before the referendum, and as a result people involved in all sides of the debate are interested in Virgin’s views on Brexit and its impact on business. Virgin is interested in engaging with different organisations to understand the impact Brexit will have on the UK.”